Otis Worldwide Corporation (NYSE: OTIS ) is the leader in escalator and elevator manufacturing, installation, and services. Otis was previously apart of United Technologies but was spun off into its own independent company in Q1 2020. The company operates two segments, New Equipment andI have a masters degree in Analytics from Northwestern University and a bachelors degree in Accounting. I have worked in the investment arena for over 10 years starting as an analyst and working my way up to a management role ...

A month has gone by since the last earnings report for Otis Worldwide (OTIS) . Shares have added about 4.8% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Otis Worldwide due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.How Have Estimates Been Moving Since Then?It t ...

Core Viewpoint - Otis has launched a new double-deck glass elevator at the Space Needle, marking the first of three elevators to be modernized, enhancing the visitor experience and maintaining the iconic status of the landmark [1][2][3]. Company Overview - Otis is the world's leading manufacturer, installer, and service provider of elevators and escalators, moving 2.4 billion people daily and maintaining approximately 2.4 million customer units globally [8][9]. - The company has a longstanding relationship with the Space Needle, having installed the original elevators in 1962 and modernized them in 1992 [3][4]. Project Details - The modernization project includes three Otis SkyRise™ sightseeing elevators, featuring floor-to-ceiling glass windows, allowing visitors to ascend 520 feet in less than 50 seconds [2][5]. - The new elevators will accommodate up to 46 passengers each in custom-built cabs, with one remaining a single deck [5][6]. - This project is notable as it is the first in North America and only the second globally to utilize Otis' high-rise SkyMotion™ 800 machines, designed for smooth and efficient rides [6]. Renovation Context - The elevator modernization is part of the Space Needle's Century Project renovation, which began in 2017 and includes additional accessibility features [7]. - The recent $100 million renovation of the Space Needle added over 176 tons of glass and introduced The Loupe, the world's first revolving glass floor, enhancing the visitor experience [10].

Otis Worldwide (OTIS) FY 2025 Annual General Meeting May 15, 2025 09:00 AM ET Speaker0 To the Otis Worldwide Corporation twenty twenty five Annual Meeting of Shareholders. My name is Julianne, and I will be hosting the meeting today. I would now like to turn the call over to Judy Marks, Chair, Chief Executive Officer and President of Otis. Speaker1 Thank you, Julianne, and good morning to all of you on the call. It's my pleasure to welcome you to our fifth annual meeting of shareholders. It's my absolute ho ...

I am neutral on Otis Worldwide Corporation (NYSE: OTIS ). My summarized thesis is that while visible macro headwinds, particularly in China and the Americas, are weighing heavily on near-term revenue and margin trends, valuation already reflects these weaknesses. And there are early signsI'm a passionate investor with a strong foundation in fundamental analysis and a keen eye for identifying undervalued companies with long-term growth potential. My investment approach is a blend of value investing principle ...

Financial Performance - Net sales for the quarter ended March 31, 2025, were $3,350 million, a decrease of 3% compared to $3,437 million in the same period of 2024[147]. - The organic volume for the quarter was flat, with a 4% increase in Service offset by a 7% decrease in New Equipment[147]. - Total cost of products and services sold decreased by 2% year-over-year, totaling $2,349 million compared to $2,409 million in 2024[149]. - Gross margin for the quarter was $1,001 million, maintaining a gross margin percentage of 29.9% compared to the same period in 2024[150]. - Net income attributable to Otis Worldwide Corporation decreased to $243 million for the quarter ended March 31, 2025, down from $353 million in the same period in 2024[168]. - The New Equipment segment reported net sales of $1,163 million for the quarter ended March 31, 2025, a decrease of 9% compared to $1,280 million in 2024[172]. - The Service segment achieved net sales of $2,187 million for the quarter ended March 31, 2025, reflecting a 1% increase from $2,157 million in 2024[176]. - The consolidated operating profit margin decreased to 12.3% for the quarter ended March 31, 2025, down from 15.8% in the same period in 2024[170]. - The company reported a net income of $256 million for the quarter ended March 31, 2025, which includes various non-cash expenses[196]. Expenses and Costs - Research and development expenses were $37 million, representing 1.1% of net sales, slightly up from 1.0% in 2024[152]. - Selling, general and administrative expenses increased to $464 million, accounting for 13.9% of net sales, up from 13.4% in 2024[153]. - UpLift restructuring costs for the quarter were $20 million, with total restructuring costs amounting to $43 million, compared to $20 million in 2024[155]. - The company expects to achieve annual recurring savings of $27 million for both 2024 and 2025 restructuring actions, with approximately 80% related to Cost of products and services sold[159]. - The reorganization of operations in China will incur restructuring costs of approximately $40 million, expected to be mostly completed by the end of 2025[160]. Tax and Legal Matters - The company recorded a favorable ruling in German tax litigation, resulting in income tax benefits of approximately $185 million and related interest income of approximately $200 million[135]. - The effective tax rate increased to 30.1% for the quarter ended March 31, 2025, compared to 25.2% in 2024, primarily due to nondeductible obligations[166]. - The company anticipates variability in the tax rate quarter to quarter due to potential discrete items[167]. Cash Flow and Debt - As of March 31, 2025, the company had cash and cash equivalents of approximately $1.9 billion, with 37% held by foreign subsidiaries[185]. - As of March 31, 2025, cash and cash equivalents decreased to $1,918 million from $2,300 million on December 31, 2024[187]. - Total debt increased to $8,406 million as of March 31, 2025, compared to $8,324 million on December 31, 2024[187]. - Net cash provided by operating activities for the quarter ended March 31, 2025, was $190 million, an increase from $171 million in the same period of 2024[193]. - Net cash used in investing activities was $161 million for the quarter ended March 31, 2025, compared to $79 million in the same period of 2024[199]. - Net cash used in financing activities was $428 million for the quarter ended March 31, 2025, down from $467 million in the same period of 2024[203]. - Total debt to total capitalization ratio increased to 251% as of March 31, 2025, from 235% on December 31, 2024[187]. - Net debt to net capitalization ratio improved to 452% as of March 31, 2025, compared to 486% on December 31, 2024[187]. Future Outlook - The UpLift program is expected to generate approximately $200 million in annual run-rate savings by the second half of 2025, with transformation costs estimated at $300 million[131]. - Global macroeconomic conditions, including inflation and high interest rates, are expected to impact financial performance, with potential tariff impacts estimated between $45 million to $75 million[138]. - The company intends to permanently reinvest certain undistributed international earnings unless tax effective to repatriate[187]. - The company has a new share repurchase program approved for up to $2.0 billion, with approximately $1.8 billion remaining as of March 31, 2025[190].

Financial Data and Key Metrics Changes - Otis Worldwide Corporation reported net sales of $3.3 billion with organic sales flat year over year [24] - Adjusted operating profit increased 3% excluding a $16 million foreign exchange headwind, with adjusted operating profit margin expanding 40 basis points to 16.7% [24][11] - Adjusted EPS grew 5% or $0.04 in the quarter, driven by solid operational performance and a lower share count [25] Business Line Data and Key Metrics Changes - Service organic sales grew 4%, with maintenance and repair services up 3% and modernization orders increasing 12% [10][26] - New equipment organic sales declined 7%, with EMEA sales growing mid-single digits and APAC approximately 10% [29][30] - Service operating profit increased to $537 million, with operating profit margins expanding 40 basis points to 24.6% [28] Market Data and Key Metrics Changes - Americas new equipment orders grew mid-teens, while Asia Pacific saw orders growth greater than 20%, primarily driven by India and Southeast Asia [15][16] - New equipment orders in China declined greater than 20%, aligning with expectations [15][16] - The total backlog, including maintenance and repair, remains at historically high levels, positioning the company well for future quarters [14] Company Strategy and Development Direction - The company is focused on a service-driven business model, with a strong emphasis on modernization opportunities due to an aging installed base [17][19] - Otis is undergoing transformation initiatives, including Uplift and a China transformation program, aimed at driving process efficiencies and capturing service and modernization opportunities [50][52] - The company anticipates a significant opportunity in modernization, with 8 million units already in the prime modernization age [17] Management's Comments on Operating Environment and Future Outlook - Management expects the new equipment market to stabilize later in 2025, with a projected decline in global new equipment units of mid-single digits for the year [35][36] - The service business, representing approximately 90% of segment operating income, is largely insulated from tariff impacts, with expectations for adjusted free cash flow of approximately $1.6 billion [39][44] - Management remains confident in the service flywheel model and anticipates stronger growth in the second half of the year due to backlog execution and cost savings from transformation initiatives [57][60] Other Important Information - The company announced an 8% increase in its dividend, bringing cumulative dividend increases since the spin-off to approximately 110% [12][44] - Otis completed approximately $250 million in share repurchases during the quarter, with a target of $800 million for 2025 [44][45] Q&A Session Summary Question: Can you provide clarity on the gross headwind from tariffs? - Management indicated that the annualized impact of China tariffs is around $90 million, with mitigation efforts expected to offset half of this impact [66][68] Question: Are you seeing any impact at the local level in China regarding US companies? - Management stated there is no overt targeting of Otis in China and emphasized the importance of maintaining strong local relationships [78] Question: What is the pricing strategy in response to tariffs? - The company has increased prices across new equipment and maintenance services, with a focus on passing inflation costs to customers [80] Question: What is the outlook for new equipment orders in China? - Management expects a sequential improvement in the China market, projecting a decline of approximately 10% in the second half of the year [84] Question: Can you elaborate on the dynamics of the Americas new equipment outlook? - Management noted that while the market in North America was down 9%, Otis's orders grew mid-teens, indicating strong performance and market share gains [124][125]

Otis Worldwide Corporation (OTIS) reported mixed results in the first quarter of 2025, wherein adjusted earnings surpassed the Zacks Consensus Estimate while net sales missed the same. On a year-over-year basis, the top line declined, but the bottom line increased.The quarterly results were impacted by a soft sales trend in the New Equipment segment, mainly due to a more than 20% decline in China and a high-single-digit decline in the Americas. On the other hand, year-over-year growth in contributions from ...

Otis Worldwide Corporation (NYSE:OTIS) Q1 2025 Earnings Conference Call April 23, 2025 8:30 AM ET Company Participants Rob Quartaro - VP, IR Judy Marks - Chair, CEO and President Cristina Mendez - EVP and CFO Conference Call Participants Jeffrey Sprague - Vertical Research Partners Amit Mehrotra - UBS Nigel Coe - Wolfe Research Steve Tusa - JPMorgan Joseph O'Dea - Wells Fargo Julian Mitchell - Barclays Chris Snyder - Morgan Stanley Nick Housden - RBC Capital Markets Operator Good morning, and welcome to Oti ...

Otis Worldwide (OTIS) reported $3.35 billion in revenue for the quarter ended March 2025, representing a year-over-year decline of 2.5%. EPS of $0.92 for the same period compares to $0.88 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $3.41 billion, representing a surprise of -1.66%. The company delivered an EPS surprise of +1.10%, with the consensus EPS estimate being $0.91.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and h ...